Operational Excellence in Non-Profits Improve Back-Office Administrative Processes & Reduce Costs
Over 3.4 million children are born with HIV and nearly half of them will die before their second birthdays without diagnosis and treatment. TBM worked with the Elizabeth Glaser Pediatric AIDS Foundation on three processes: procurement, cash management and sub-contractor compensation.
We applied classic lean process improvement tools to improve administrative process efficiency and reduce operating costs.
- Reduce lead time for non-hotel purchases from 15 days to seven days
- Reduce the standard vendor payment cycle time from anywhere between 15 and 50 days to 10 days
- Reduce overdue un-liquidated advances by 75 percent
This story demonstrates how portable the tools and concepts of operational excellence are and the dramatic results that can be achieved in any type of organization.